Competing against a business rival who has a 20% stake in the market is undoubtedly, a tall order. Kate Hudson’s online fashion retail firm, Fabletics has however managed to take on more established retailers such as Amazon. The company has grown into a $250 million enterprise within three years, which is a notable achievement by all standards. Fabletics forms part of the burgeoning activewear movement, which is already revolutionizing the fashion industry.
Fabletics typically uses a subscription-based model to sell clothing items to clients. The proposition is straightforward, clients love brands that are comfortable and push them to the limit while working out. Combining this with a membership model and convenience leads to a powerful combination. Historically, high value brands are defined by quality of goods and price. However, there has been a shift in recent years.
Fabletics likens itself to brands such as Warby Parker and Apple. It has strategically positioned itself in the competitive clothing market as a reliable fashion membership brand. To bolster its huge online presence, Fabletics has been on an expansion move that has seen it open physical stores in different cities. Plans are underway to increase the number of stores from the current 16. The company’s general manager Gregg Throgmartin asserts that the secret behind its runaway success has been the steadfast dedication towards building a brand that consumers can easily identify with. The membership model allows Fabletics to offer customers personalized services at affordable prices.
Fabletics in Brief
Fabletics is a fitness clothing firm that is associated with Hollywood actress, Kate Hudson. The company is famous for its monthly membership model. Workout apparel are sent to members every month. Upon acceptance, the retail price is deducted from their credit cards. Those who do not accept items sent to them can ship them back to the company.
When a new client is brought on board, he/she will be asked about his/her fashion preferences during workouts. Outfits are then picked out to meet the preferences. Fabletics is affiliated with JustFab. Since its launch in 2013, it has managed to garner a membership of more than 100,000. Its revenues have also been growing remarkably due to its aggressive marketing strategy. The planned opening of more physical location is likely to solidify Fabletics’ dominance in the athleisure market.